EXCEL INDUSTRIES LTD,MUMBAI V. DCIT CC 6(3), MUMBAI

MA 492/MUM/2023

AI Insights

Excel Industries Ltd. filed four miscellaneous applications against the common order of the ITAT concerning the assessment years 2010-11 to 2013-14. The applications addressed two main issues: the non-adjudication of the additional ground of appeal regarding the deduction of prior period expenses and the incorrect reference to Rule 8D(2)(iii) instead of Rule 8D(2)(ii) in the context of disallowance of interest expenses under section 14A. The ITAT acknowledged these errors and allowed the applications, thereby recalling the impugned order to adjudicate on the mentioned issues.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 37295 (ITAT-MUMBAI)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Laws Referred To: Income Tax Act, I.T. Rules
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KIRAN UNAVEKAR
• Assessee Lawyers: KIRIT KAMDAR
• Keywords: Rule 8D
• Section: 14A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDUCIAL MEMBER MA No. 489/Mum/2023 (Arising out of ITA No. 914/Mum/2018) Assessment Year: 2013-14 & MA No. 490/Mum/2023 (Arising out of ITA No. 5474/Mum/2017) Assessment Year: 2012-13 & MA No. 491/Mum/2023 (Arising out of ITA No. 5473/Mum/2017) Assessment Year: 2011-12 & MA No. 492/Mum/2023 (Arising out of ITA No. 5472/Mum/2017) Assessment Year: 2010-11 Excel Industries Ltd. 184-87, Excel Estate, S.V. Rd., Jogeshwari (W), Mumbai – 400102. PAN: AAACE 2488 F Vs. DCIT, CC – 6(3), Mumbai (Appellant) (Respondent) Present for: Assessee by : Shri Kirit Kamdar Revenue by : Shri Kiran Unavekar, Sr. DR Date of Hearing : 03.01.2025 Date of Pronouncement : 03.02.2025 O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: All these four miscellaneous applications pertaining to A.Y. 2010-11 to 2013-14 are directed against the common order of the ITAT vide ITA No. 5472 to 5474/M/2017 and vide ITA No. 914/M/2018. MA Nos. 489 to 492/Mum/2023 Excel Industries Ltd. 2 M.A. No. 489/M/2023 for A.Y. 2013-14 M.A. No. 492/M/2023 for A.Y. 2010-11 M.A. No. 490/M/2023 for A.Y. 2012-13 M.A. No. 491/M/2023 for A.Y. 2011-12 2. In the miscellaneous application the assessee submitted that additional ground of appeal filed by the assessee in respect of allowability of deduction of prior period expenses in the year in which the prior period expenses have been debited to P&L A/c was not adjudicated. M.A. No. 492/M/2023 for A.Y. 2010-11 3. The assessee also submitted in the miscellaneous application that assessee has filed ground of appeal on the issue of disallowance of interest expenses u/s 14A r.w. Rule 8D(2)(ii) of the I.T. Rules against the decision of ld. CIT(A). However, while adjudicating the ground of appeal of the assessee at para 24 of the order of the ITAT inadvertently it is mentioned that no disallowance ought to be made in respect of interest under Rule 8D(2)(iii) instead of Rule 8D(2)(ii) of the I.T. Rules. 4. Heard both the sides and perused the material on record. On perusal of the order of the ITAT dated 09.01.2023, we find that there is apparent mistake from record as the additional ground no. 2 filed by the assessee in respect of claim of prior period expenses as referred (supra) in this order was remained to be adjudicated in respect of A.Y. 2010-11 to A.Y. 2013-14 as printed out in all the four miscellaneous applications filed by the assessee. Therefore, we find merit in the miscellaneous application filed by the assessee MA Nos. 489 to 492/Mum/2023 Excel Industries Ltd. 3 and recall the impugned order of the ITAT in all the assessment years to adjudicate the additional ground no. 2 as discussed. 5. Further, we also find merit in the miscellaneous application filed by the assessee as inadvertently while adjudicating the issue of disallowance for the purpose of Rule 8D(2)(ii) it was mentioned as Rule 8D(2)(iii). The disallowance as referred u/s 14A be read as made under 8D(ii) of the I.T. Rules as against 8D(iii) of the I.T. Rule. Accordingly, the miscellaneous application filed by the assessee are allowed. 6. In the result, all the miscellaneous applications filed by the assessee are allowed. Order pronounced in the open court on 03.02.2025. Sd/- Sd/- (ANIKESH BANERJEE) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 03.02.2025 Biswajit, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. The CIT, 4. The DR //True Copy// [ By Order Assistant Registrar ITAT, Mumbai Benches, Mumbai "